SUPREME COURT

Dominion, Volume 11, Issue 122, 9 February 1918, Page 10

SUPREME COURT

■■ SCHAEF'S BANKRUPTCY VERDICT OF GUILTY RETURNED His Honour Mr. Justice Hosking wason the bench at the Supremo Court yesterday, whon the hearing of criminal cases was resumed. Arthur* Waldemar Schnef, photographer, appeared in the dock to answer tho following charges:—(l) That baying been adjudged a bankrupt ho did fail to deliver up to tho possession of the Official Assignee the sum of £1500 which was devisiblc amongst his creditors, which sum being in his possession or under his control; (2) about October 5 he did, after the presentation of tho bankruptcy petition against him, conceal part of his property, namely, the sum of £1500; (3) did fail to keep such books of accounts as are "usual and proper in the business carried on by him as to sufficiently set forth his transactions and disclose his financial position.. Mr.' J. Prendeville, of tho Crown Law Office, appeared for the Crown, and Mr. P. \V. Jackson appeared for the accused. Mr. Alfred William Watts was foreman of the jury. In an action for slander brought against the accused last year by a young woman, damages to the amount of £625 and costs were awarded against Schaef, and this liability, the Crown Prosecutor stated,.Schaef had not discharged, and apparently had no intention of discharging. Richard Clement Kirk, solicitor to the Government Life Insurance Office, gave formal evidence as to Schaef owning a property in Home Street, which bad been transferred.

Samuel AVilliam Tansley, Official Assignee, gave evidence of Schaef's bankruptcy, and stated that he sent out formal notice for the bankrupt to produce his books and papers, and Schaef handod over his order hooks only. Schaef also handed over a statement showing £40 and £760 18s. 6d. of debts, the principal creditor being Miss Davey, for £704. Witness visited accused premises and asked if he had any cash in hand. He replied that he had not. Asked if he had sold any property, he said that ho had, and that he had sold it for £1500. and that they would not trace it. The sale r the studio plant realised £35. Witness remembered Schaef's examination in Court, and in referenco to the sum of £1500 accused said he had tin money in a box in .a studio, and h*-' it up to within two, nights of his public examination. No hank-book w.t--produced, and witness circularised nil the banks, but the defendant was not known to .them.

To Mr. Jackson: Apart from hisi principal creditor, Schaef's debts were very small for a man who had been'in business for so long a time. Witness took charge of Schaef's business on, tho day Schaef was declared a bank-; rupt. Witness asked for the books, and had what was given to him packed up and taken to his office. The first meeting of creditors was held on October 5. Whon witness saw accused on Septembor 25 he asked him if he had sold a property, and ho said h had. With respect to the £1500, accused did not say that they could not get the money because it belonged-to his wife. Ho did not make any sucP statement at any interview witncfi.with him. The accused made that 'statement for the first time at his public- examination. Witness had been asked to be allowed to be substituted for\Schaef in proceedings ,for a rehiring of the slander action, but as far as witness knew he had not been so substituted. The -property taken possession of by .witness was sold by auction, and realised £35, which witness thought was 'fair. A valuation was made of this pro]»rty by a man in the same line of business, and his valuation was £32 9s. 6d. ,;

Re-examined: The property in Vivian Street, whero Schaef had his sfoidio, and the Home Streot property, where Schaef lived, were both sold by bankrupt. At the meeting of creditors Mr. T. Young, solicitor, asked irhere the £1500 was, and Schaef said: "I decline to say where the money , is." Schaef was then on oath, hut Ik declined to sign tho statement. The evidence of Frederick E. Ward, solicitor, taken in the Magistrate's Court with respect to the"'sale of the Vivian Street property was put in. Ronald A. Douglas, clerk ian the Bank of New Zealand, produci'jl the cheque drawn by Menteath aii'j Ward in favour of A. W. Schaef, «id endorsed by the latter for the gum of £1500. John Alfred Koch, bank : officer, Bank of New Zealand, said thb cheque for £1500 was paid in for collection through J. A. B. Howe's accomnt, and the money went to the credijt of the latter's .account.

John Albert B. Howe stateil that lie met Schaef in tho bank. Sjchaef explained tliat he had no banking account, and that the cheque was crossed payable to order or something. "Witness agreed to give Schacif an open cheque, and that was how t,lie cheque from Messrs. Menteath and Ward went through his aceougt. R. W. Green, cliemist, said that he had known Schaef for about twenty-five ■years. Witness bought Sclnnef's properties in Vivian Street and Home Street for £2500—took over his mortgage of £1000, and paid £15170 in cash. The properties.were still in [lie occupation of Schaef, who was now a weekly tenant paying 255. per weiak for the house m Home Street and 115s. for the business premises in Viviaii Street/ This closed the case for the prosecution. The Defence, Mr. P. W. Jackson, in opening the defence, said that there was no concealment of: the property. When the Official Assignee asked Sohaef if he had received £1500, Schaef immediately answered, "Yes." Th<i money was nover demanded, never aiiaed for; all tliat was done was that tlio usual circular was sent by the Official Assignee, but there was no speciifio demand for tho delivery of the money. Schaef's defence was that Schaef -acted in the honest belief that the £1500 was not his', but tho property of his wife. He did not act witli a fraudulent intention, ho acted in. a perfectly honest and bona-fide manner- in not handing over the money to the Official Assignee.

Arthur Waldomar Schaef said he had been a photographer in Wellington for twenty years. On September 25 he was adjudged a bankrupt on a creditor's petition, which ivas the outcome of a judgment for fancier. At the time of bankruptcy ho; had only the plant in the studio. Ho sold property to Mr. Green for £5500, and received £1500 in cash. The proporty was in his name, but the money; was provided by Mr. Glecson, his father-in-law. When he was married in Greymouth his father-in-law built ho and-his wife a house./ They sold ti.is house for £300, and came to Wellington, and purchased tho property in Vivian Street. His fathor-i.ii.-Inw gave his wife £150 to help to pay off the.morteage on the Vivian Btreet property. This property was. bringing in £150. The proporty was in his; name, because his wife was a delicto woman, and she thought it better, to have the property in his name. If asked by anyone in the street if the property ivas his, he would have suid "Yes," but morally it was his wife's. The Home Street property was purchased out of the rentals of tho Vivian Street propert}-, and a mortgage of £450 was raised on it. Prior; to his bankruptcy the properties wen} sold. He gave the £1500 to his wife, and she asked him to take care «f it. The money was kept in two orr (three places, but latterly it wap placed in »

steel cash-box, and was kept by his wife in their private house, but witness had access to it. Tho cash-box was in a chest of drawers in a spare room. Accused had not tho money, and could not place his hands on it. The day after his public examination, or a day or two before, his house was broken into, the cash-box was taken, and was found in tho next section. He left his home at 8 p.m., and win he returned at 10 p.m. he found tho police in possession, and the mov gone. No one beyond his wife and himself knew that the money was i" the house. His wife and himself and three children resided in the houso The Official Assignee called on him on the day of his bankruptcy, and asked for his books, which he delivered. His business was on _a strictly cash basis in buying and selling. He told tho Assignee that he had no cash. Thero was no reference to .any sale of property on that occasion. He was in contact with the JVssignce on three occasions only. The question of the £1500 was raised for the first time a' his public examination. His studio was as well equipped as any in New Zealand. He valued it at the time at £40, but he made a mistake. The man who bought the lot made £80 on it immediately. An application had been made for a now trial iifthe slander case, based on new evidence. He could earn a living, but he had neither money nor property just now. Cross-examined: His wife had another property, the equity of which was worth £200. It had been in her name for eight or ten years. He had no moneV of his own to put into the Vivian Street property, nor did lie put any money into the Home Street property. There were two keys to tii.' steel cash-box in which the £1500 was placed; He had one key and Mrs. Schaef the other. The money ho drew out of the Post Office he used for paying his lawyers and for medical expenses. ' 'it Lucy Mary Sohaef, wife of tho accused, in her evidence, stated that she' had received financial assistance from her father. She said she purchaser tho Vivian Street property and the other properties. i The jury retired at 4.40 p.m., and returned shortly after 5 p.m. with a verdict of guilty on two counts. The charge of not keeping proper books was withdrawn.., When the verdict was announced Schaef said: "I sought the protection of the law, but never again." BVwas remanded until to-day for sentence, and was admitted to hail on lis own recognisance of £SU. : Tho hearing of the charge against John Slines for indecent assault on males (six counts) was continued yesterday morning in the Supreme Court. The jury returned .a verdict of guilty on all counts, and the prisoner was remanded until to-day for sentence.

CHRISTCHURCH SESSION

A BATCH OF SENTENCES. By Telegraph—Press Association. Christohuroh, February 8. • At the. Supreme Court, Walter Francis Crib, aged 30. found guilty of bigamy, was sentenced to five years' imprisonment, with hard labour. Thomas M'Millan, for theft', received two years, with hard, labour, and was declared an habitual "criminal.- Ernest Edward Barnshaw, aged 17, guilty of theft, was placed under the care of the Salvation Army for three years.'Frederick Richard Woodley, aged 34, for breaking and entering and theft, received three months, with hard labour. I'ercival John Edwards, aged 16, for arson was sentenced to four years' reformative treatment, and Walter Robert Edwards, aged 28, for an offence of a similar nature, was sentenced to two years' reformative treatment.